State supervision of banks and other financial institutions is one of the principal points of one of the many economic and financial laws adopted by the Reich Cabinet to-day.
The new law draws a dividing line between the money and capital market and virtually puts an end to purely private initiative in credit transactions. The capital stock law was also put into operation to-day.
Seven recommendations were made by a Committee of Inquiry of Banking, headed by Dr. Hjalmar Schacht, President of the Reict The Committee, which deliberated banking reforms for almost a year. heard no fewer than 123 experts before completing its report. The recommendations are as follows:—1. The establishment of @ control office with full powers over all credit institutes.
2, All credit institutes and their branches must obtain ofo
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